It is an incredibly sad day for Xbox as parent company Microsoft begins sweeping layoffs. 4,800 people have lost their jobs at the tech conglomerate today, July 6, with roughly 1,600 of those from the Xbox gaming branch of the company. Over the next year, the Xbox layoffs will double to 3,200.
The tally includes Xbox divesting from four studios: Compulsion Games, Double Fine, Ninja Theory, and Undead Labs. The fate of a fifth developer, Arkane Studios, remains up in the air, with Xbox considering both a sale and closure. Of the four divested studios, Compulsion Games and Double Fine will become independent, while Ninja Theory and Undead Labs are reportedly being sold to unannounced buyers. The former two have made official statements on their newfound independence.
Compulsion Games, having most recently released the award-winning South of Midnight, "will return to independent management" and "retain the rights to Contrast, We Happy Few, and [...] South of Midnight," per an official update posted to Bluesky. Compulsion's "immediate priority is to support our team throughout this transition period," and pledges to "create unique games that tell important stories, all with the goal of touching the hearts and minds of our players."
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